Archive for the ‘Frequently Asked Questions’ Category

A National ID Card

Thursday, March 11th, 2010

A comprehensive immigration bill coming together in the Senate could include a requirement that all American workers obtain a national biometric identification card.

Under the proposal, all legal U.S. workers, including citizens and immigrants, would get an ID card with information such as fingerprints embedded onto the card.

The effort is being spearheaded by Sens. Chuck Schumer (D-N.Y.) and Lindsey Graham (R-S.C.). They and their supporters say requiring companies to hire only people with worker ID cards would keep illegal immigrants from taking American jobs.

Privacy advocates fear such a card, which is common in European countries, would become a de facto national ID that would allow the government to track citizens.

Schumer and Graham hope to meet with President Obama to discuss this addition to the immigration bill.  An administration official told the Journal the White House had no position on the worker ID card.

Other advocates of such a card say that would mean “no excuses” for employers hiring illegal workers.  This advocates further state that more verifiable employee’s means more taxes thus more dollars for local, state and national programs.

With a debate on this issue just starting to heat up, it is worth looking at a “verify the status of your prospective employee” program that is already in place and being used in greater numbers every day.

E-Verify is an Internet-based system that allows an employer, using information reported on an employee’s Form I-9, Employment Eligibility Verification, to determine the eligibility of that employee to work in the United States. For most employers, the use of E-Verify is voluntary and limited to determining the employment eligibility of new hires only. There is no charge to employers to use E-Verify. The E-Verify system is operated by the Department of Homeland Security in partnership with the Social Security Administration.

More than 189,000 employers are enrolled in the program, with over 8.7 million queries run through the system in fiscal year 2009. There have been over 5.5 million queries run through the system in fiscal year 2010 (as of February 27, 2010).

E-Verify is mandatory for some employers, such as those employers with federal contracts or subcontracts that contain the Federal Acquisition Regulation (FAR) E-Verify clause and employers in certain states.

For Employers

E-Verify is a voluntary program for employers, with limited exceptions. Companies can access E-Verify online and compare an employee’s Form I-9 information with over 455 million records in the Social Security Administration database, and more than 80 million records in Department of Homeland Security immigration databases.  The number of registered employers is growing by over 1,200 per week.

For Federal Contract Employers

Federal contractors and subcontractors are required to use E-Verify as of September 8, 2009. Executive Order 12989 mandates the electronic verification of all employees working on any federal contract.

Proof of Funds

Monday, February 8th, 2010

Proof of where the Investor got their investment

To prove the source of investment funds, CIS requires five years of personal and business, if any, tax returns, proof of ownership in any businesses and business licenses. You must present a track record of an honest course of dealing. If your capital came from a specific transaction, such as sale of a house, inheritance or gift, you must prove the transaction occurred, by providing an official document, such as a closing statement or contract or other official documents. This is not an exhaustive list. Other documents may be required and vary on a case-by-case basis.

Is EB-5 truly a passive investment?

Sunday, January 10th, 2010

After being asked about every possible question on the EB-5 process and program, I thought it would be helpful to relate the most asked questions answers to these questions that come up most often. A concern of Investor and General Partner alike: “Is EB-5 truly a passive investment?”

The EB-5 regulations require involvement in management or policy making. The regulations deem a limited partner in a limited partnership that conforms to the Uniform Limited Partnership Act, sufficiently engaged in the policy making of an EB-5 enterprise.

The above is the answer but it is important to also “know and show” the actual regulation.  Here it is:

Statutes & Regs / C F R / 8 CFR: Aliens & Nationality / Parts 100-299 / Part 204-Immigrant Petitions / § 204.6 Petitions for employment creation aliens / 204.6(j) Initial evidence to accompany petition. / 204.6(j)(5) / 204.6(j)(5)(iii) (iii) If the new enterprise is a partnership, either limited or general, evidence that the petitioner is engaged in either direct management or policy making activities. For purposes of this section, if the petitioner is a limited partner and the limited partnership agreement provides the petitioner with certain rights, powers, and duties normally granted to limited partners under the Uniform Limited Partnership Act, the petitioner will be considered sufficiently engaged in the management of the new commercial enterprise.